Lannett hires advisers to explore debt and capital structure options

Generic drug maker Lannett Co. Inc. LCI, -0.32% said Monday it has hired advisers to explore debt and capital structure options, as it works to combat the effect of the loss of a key distribution agreement. The company said in August that Jerome Stevens Pharmaceuticals had decided not to renew an agreement that expires next March under which it sold JSP’s Butalbital, Aspirin, Caffeine with Codeine Phosphate Capsules USP, Digoxin Tablets USP and Levothyroxine Sodium Tablets USP. The news sent its stock down 60% to mark their biggest one-day decline since March 20 of 1993. Chief Executive Tim Crew said the company expects to remain in compliance with debt covenants until at least the end of fiscal 2019, but has hired Kirkland & Ellis LLP and Lazard Ltd. as advisers. Shares were flat Monday, but are down 80% in 2018, while the S&P 500 SPX, +0.11% has gained 8%.

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